An Ordinance amending Chapter 5.04 of the Metropolitan Code of Laws to provide
certain reporting requirements for nonprofit organizations receiving grants
from the Metropolitan Government.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT
OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. Chapter 5.04 of the Metropolitan Code of Laws shall be and the
same is hereby amended by adding the following new Section 5.04.060:

“5.04.060
Grants made to nonprofit organizations.
A. The metropolitan council is authorized in accordance with the provisions
of Tenn. Code Ann. §7-3-314 to appropriate funds for the financial aid
of nonprofit organizations by the adoption of a resolution receiving twenty-one
(21) affirmative votes, or as part of the annual operating budget ordinance
adopted by the council.
B. Prior to the adoption of a resolution appropriating funds to a nonprofit
organization or the expenditure of funds authorized in the operating budget
ordinance as an appropriation to a nonprofit organization, such nonprofit organization
shall submit to the metropolitan government the following information:
1. A copy of its corporate charter or other articles, constitution, bylaws,
or instruments of organization.
2. A copy of a letter from the Internal Revenue Service evidencing the fact
that the organization is a nonprofit, tax-exempt organization under the Internal
Revenue Code of 1986, as amended.
3. A statement of the nature and extent of the organization’s program
that serves the residents of the metropolitan government.
4. The proposed use of the funds to be provided by the metropolitan government;
5. The proposed budget of the organization, indicating all sources of funds
and a line-item identification of the proposed expenditure of metropolitan
government funds.
6. A copy of the organization’s audit for the most recent fiscal year.
For purposes of this subsection, “audit” shall mean a formal examination
of the organization’s accounting records and financial situation in accordance
with the generally accepted auditing standards issued by the American Institute
of Certified Public Accountants.
C. The information required in subsection B. of this section shall be retained
in the metropolitan clerk’s office and shall be available for public
inspection during regular business hours.
D. The provisions of this section shall not apply to nonprofit civic and charitable
organizations receiving grants from the Metropolitan Nashville Arts Commission
in accordance with section 2.112.040 of the Metropolitan Code of Laws.”

Section 2. This Ordinance shall take effect from and after its passage, the
welfare of The Metropolitan Government of Nashville and Davidson County requiring
it.

Sponsored by: Erik Cole

Amendment No. 1
To
Ordinance No. BL2004-421

Mr. President:

I move to amend Ordinance
No. BL2004-421 by amending Section 1 by deleting the Code section “5.04.060” and substituting in lieu thereof the
Code section “5.04.070”.

Sponsored by: Erik
Cole

Amendment
No. 2
To
Ordinance No. BL2004-421

Mr. President:

I move to amend
Ordinance No. BL2004-421, as amended, by renumbering Section 2 as Section 3,
and adding the following new Section 2:
"Section 2. The provisions of Section 1 of this ordinance shall not become
effective until July 1, 2005."